NEW YORK CITY—Partners Madison Realty Capital and USAA Real Estate Co. have announced plans to build a nearly 171,000-square-foot, 80/20 multifamily building in the Clinton Hill section of Brooklyn.
The $88.5-million project, located at Waverly Avenue and Atlantic Avenue, totals 27,466 square feet. Madison Realty Capital acquired four properties, plus additional development rights from neighboring properties via two off-market transactions in order to assemble the development site. MRC purchased 551 Waverly Ave. for $23.5 million and has closed on three adjacent properties for $7.5 million to complete the assemblage that features frontage along Atlantic Avenue that will support ground floor retail. MRC also purchased development rights to increase the buildable area for its project, the company states.
“This was a unique opportunity to assemble a large site and develop an institutional quality multifamily development with tremendous growth potential in this popular Brooklyn residential neighborhood,” says Josh Zegen, co-founder and managing principal of MRC. “Limited supply coupled with enormous demand for quality market rate and affordable housing product in this area, and the development's 421a tax benefit, makes this project an ideal fit for our overall investment strategy, and exemplifies our ability to identify and maximize quality long-term investments with strong upside. MRC and our partner USAA look forward to its completion.”
The development will consist of an eight-story residential building with a total of 191 apartments, including studio, one-bedroom, and two-bedroom units. The building will also have retail storefronts on Atlantic Avenue. Approximately 27,515 square feet of the building will be below grade and will be used for amenity space, storage space for tenants, and 96 parking spaces.
Madison Realty Capital and USAA intend to pursue a hands-on management approach to the development and will engage an experienced and competitive marketing team to lease up the property as it approaches completion.
Also in Brooklyn, Madison Realty is currently developing a mixed-use property totaling more than 200,000 square feet in Clinton Hill. The firm has more than 620,000 square feet of space in development in Manhattan and Brooklyn.
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